Condominium ownership is a different type of property ownership than owning a house. Condominium ownership, typically referred to as "condo ownership," is a unique form of property ownership that combines elements of individual and collective ownership. There are many similarities, but there are some important distinctions that home buyers should be aware of as they do their research.

What is Condominium Ownership?

One of the differences is that a condo corporation takes care of the premises for the homeowner. Whether it’s a high-rise or a housing complex, a condo corporation is generally responsible for the upkeep of the area. This typically entails:

• The association handles exterior maintenance, landscaping, and repairs, which can be a significant benefit for busy individuals or those who prefer not to manage these tasks themselves

• Condominium complexes often come with various amenities such as swimming pools, fitness centers, and clubhouses that individual homeowners might not afford or choose to install. These amenities enhance the quality of life for residents and are maintained by the association

• Many condominium complexes offer enhanced security features such as gated entrances, security personnel, and surveillance systems, providing a sense of safety and peace of mind

Considerations and Challenges

In return for taking care of the premises, homeowners are required to pay a fee, known as a maintenance fee, to cover the costs of the upkeep. The ongoing financial commitment to condo fees and potential special assessments can be significant. Prospective buyers should carefully consider these costs and their ability to meet these financial obligations. There are also shared spaces, known as common elements, that maintenance fees also cover, such as repairs or upgrades to elevators for example.

Different factors go into the final calculation of the maintenance fee. It’s a good idea to have a look at the condo corporation’s status certificate and declaration to understand how these fees affect your bottom line and your monthly payments going forward.

Status Certificate of a Condominium Home

For people who purchase a condo as a new home, they may not understand what a status certificate is, and what information it holds. As outlined on the CAO website, a status is a crucial document in the process of purchasing a condominium home. It provides prospective buyers with detailed information about the financial health, rules, and regulations of the condominium corporation. It helps buyers make informed decisions and understand their potential responsibilities and obligations.

The status certificate includes the condominium corporation’s budget, which outlines income and expenses, and the status of the reserve fund. The reserve fund is essential for covering major repairs and replacements of common elements, such as roofs, elevators, and HVAC systems. Additionally, it offers transparency and crucial insights for prospective buyers, helping them to evaluate the stability and management of the condominium corporation.

To obtain and review a status certificate carefully, it’s best advised to consult with a real estate lawyer familiar with condominium transactions. He/she will be able to answer your questions about fees, and payments and can assist you with identifying what you want to know to make an informed decision about your purchase.